Today, RBS, which is now 84% owned by the Government in economic terms (whatever that means) announced the biggest loss in British corporate history of £24.1bn.
Wow. That’s a lot of money.
We, the tax payers (so if you don’t pay taxes you can ignore this bit), are taking on RBS’ “toxic assets” to the tune of £325bn.
Wow. That’s even more money.
Now, you’re probably thinking “well we own the bank now so we (the tax payer) can run it how we want it!”
Yes!
Actually, no. “We”, despite owning 84% of RBS have no voting rights.
That’s right, we own the thing, we’ve pumped loadsa money into the thing but we have about as much say in the damn thing as we do in whether or not it rains tomorrow.
Instead, we’re now paying for the former CEO, Sir Fred Goodwin – the man who was in charge when we had to bail RBS out – to live a life of luxury on £650,000 a year.
That’s 26 times the national average! Not a bad payout for being instrumental in bringing the economy to it’s knees. (Mental note: start a bank tomorrow, good pay even if you do a bad job.)
I know I’m being very defeatist, negative and probably over-dramatic but I’m annoyed.
The Government is trying to uncover those people using tax havens like Switzerland while at the same time spending massive amounts of public money on bailing out banks without actually giving us any say in what happens. It is our money they’re using afterall. (I feel a petition coming on.)
I don’t blame anyone for avoiding tax now. If I was at or above the higher earnings limit I’d hide my dosh away in Switzerland, too! I’d rather burn 40% of my hard earned income myself than give it to the Government to do the same.
At least I could keep warm that way and avoid paying exhorbetant gas and electricity bills just to stop myself from dying of hypothermia.
Anybody else agree? Or am I being over-dramatic? Would you hide your money in a tax haven? Do you?
look at the share price over the last year too. shocking reading if you are a shareholder
http://www.google.co.uk/finance?q=LON%3ARBS
That’s a 93% drop over the last 12 months!
Sounds to me like burying money in Switzerland or the likes might be a bad idea, if every man and his dog (governments) go digging where they think they’ll find gold, why not hide it in their own back yard? if the RBS share price is on its proverbial face, what better place to hide it than in shares of RBS? the government clearly won’t let it die, so it can only get better or stay static, and since the banks are no longer paying interest on cash held in current accounts, then we can’t lose either way!
I see your thinking Mr LeTonk but I’d rather not put my money in such a volatile environment, yagetme?